# Economics/Quantity Demanded/Quantity Supplied

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### Document Description

As an economist for ABC Plastics, your boss has asked you to respond to some questions she has regarding the company’s main product, tablet cases. A marketing research firm recently developed the following supply and demand schedules for tablet cases:

Price/Case
Quantity Demanded
Quantity Supplied
\$24
5000
18000
22
6000
17000
20
7000
16000
18
8000
15000
16
10000
14000
14
11000
13000
12
12000
12000
10
13000
11000
8
14000
10000
6
15000
9000
4
16000
8000
2
17000
7000
Questions:
Construct a graph showing supply and demand in the tablet case market, using Microsoft Excel.

How are the laws of supply and demand illustrated in this graph? Explain your answers.

What is the equilibrium price and quantity in this market?

Assume that the government imposes a price floor of \$16 in the tablet case market. What would h

## Written By

Studypool Tutor
QuantityDemandedPrice/CaseQuantitySupplied\$2450001800022600017000207000160001880001500016100001400014110001300012120001200010130001100081400010000615000900041600080002170007000\$30\$25\$20\$15\$10\$5\$00500010000DemandSupply1000015000200002) The law of demand states that, other things remaining constant, if the price of a cincreases, quantity demanded decreases. In this case also, we can observe the negatibetween price and quantity demanded from the graph.Similarly, law of supply states that other things remaining constant, if the price of aincreases, then quantity supplied of that commodity also increases. This positive relbe observed in our examplening constant, if the price of a commodityalso, we can observe the negative relationshipaining constant, if the price of a commodityalso increases. This positive relationship can also3) From the intersection of demand and supply, we will get theequilibrium price and quantity. The equilibrium price is \$12and the equilibrium quantity is 12000 unitsll get the\$30\$25\$20Demand\$15Supply\$10\$5\$005000100001500020000DemandSupply4) If the government imposes a price floor of \$16, then, there will be an excess supply. Since equilibrium price w\$12, an increase in price will reduce the demand while increase the quantity supplied. This will lead to a situationexcess supply. From the graph below, we can

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